A Manufacturing Renaissance: Americas New Energy Future

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From the IHS Forum Event, September 17-19, 2013 in Houston, TX. John Larson, Vice President, Economics at IHS, shares his perspective on the Unconventional Revolution: Quantifying the Contributions of Unconventional Oil and Natural Gas Development on US Manufacturing.

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A Manufacturing Renaissance: Americas New Energy Future

  1. 1. A Manufacturing Renaissance September 19, 2013 4:00pm – 5:30pm John Larson, Vice President, Economics, IHS The Unconventional Revolution: Quantifying the Contributions of Unconventional Oil and Natural Gas Development on US Manufacturing Across America’s widening energy landscape, the economic contributions of unconventional oil and natural gas are revolutionizing America’s energy future and bringing enormous benefits to its economy. These effects are visible within the full set of value chains – upstream, midstream, downstream, and energy-related chemicals – and are extending into the broader reaches of the US economy. US manufacturing is realizing new production cost advantages in the form of lower prices for raw materials and energy, leading to a shift in global competitiveness for the US and the expansion of manufacturing activity. Key Takeaways In 2025, nearly 515,000 manufacturing jobs will be supported by the broader macroeconomic contributions that begin with unconventional oil and natural gas. The impact on US net trade is expected to increase steadily, plateauing at roughly $180 billion per year in 2022. IHS analysis demonstrates that this manufacturing renaissance will increase overall industrial production by 3.5% by the end of the decade and by 3.9% by 2025. Subsectors such as Basic Organic Chemicals; Resins and Synthetic Material; Agricultural Chemical; and Iron and Steel Product are among the top-ranked manufacturing sectors benefiting from this revolution By 2015, 3.2% of all US manufacturing jobs will be linked to unconventional development. By 2025, this share will jump to 4.2%. We have considered the environment in our production of materials for this event.
  2. 2. The session will focus on the final results of America’s New Energy Future research series assessing the evolving economic contributions of unconventional oil and natural gas development activity. The report’s three volumes quantify how unconventional activity creates economic value in the broader economy. The three volumes within this research series are as follows: 1) The national economic contributions of unconventional upstream oil and natural gas activity in the lower 48 US states– Volume 1 2) The state-level economic contributions of unconventional upstream oil and natural gas activity in the US lower 48 states – Volume 2 3) The economic contributions and prospects for a domestic manufacturing renaissance resulting from unconventional upstream oil and natural gas activity in the US lower 48 states – Volume 3 Notes: For more information, please visit: www.ihs.com IHS | 321 Inverness Drive South | Englewood, Colorado 80112

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